Department for Digital, Culture, Media and Sport

Reporting Contingent Liabilities in Relation to the Live Events Reinsurance Scheme

Baroness Barran: I am repeating the following Written Ministerial Statement made today in the other place by my Honourable Friend, the Minister of State for Digital and Culture, Caroline Dinenage MP:I am tabling this statement for the benefit of all members of this House to bring to their attention the Departmental Minute issued today that provides the House with notice of a contingent liability created by my Department. This is in relation to the Live Events Reinsurance Scheme.The Live Events Reinsurance Scheme was announced by the government on 5 August 2021 and will support live events across the country - such as live music shows, music festivals, sporting and business events - that are at risk of being halted or delayed due to an inability to obtain this insurance. HMG is partnering with insurers to offer a cost indemnification insurance scheme which will make cover available against the cancellation, postponement, relocation or abandonment of events due to new UK Civil Authority restrictions in response to Covid-19. Cover will be available to purchase alongside standard commercial events insurance for an additional premium. The duration of the cover will be from September 2021 to 30 September 2022.Based on the risk share set out and the initial appetite put forward by insurers, the scheme will create £750m of cover at any one time, although this could increase if there is market demand and insurer willingness to offer more cover. The scheme’s lifetime exposure is unlimited. To retain control over the fiscal risk, government has retained the right to stop writing new cover at any time, built in a review point in the first half of 2022 and is requiring any individual insurer to seek explicit permission ahead of exceeding a net exposure of £400m or more.It is normal when reporting contingent liabilities to provide 14 working days’ notice before the liability is incurred. There is an exception in cases of special urgency. This is one such occasion. In order to ensure that event organisers have the confidence to plan ahead it is important that we launch this scheme in early September.A copy of the Departmental Minute is being placed in the Libraries of both Houses.

DCMS Contingencies Fund Advance

Baroness Barran: I am repeating the following Written Ministerial Statement made today in the other place by my Honourable Friend, the Minister of State for Digital and Culture, Caroline Dinenage MP:I am tabling this statement for the benefit of all members of this House to give notice of a Contingencies Fund Advance for the Live Events Reinsurance Scheme.A requirement for a Contingencies Fund Advance has arisen due to the need for the government to partner with the insurance industry to deliver a Live Events Reinsurance Scheme.The scheme will support live events across the country - such as live music shows, music festivals, sporting and business events - that are at risk of being halted or delayed due to an inability to obtain this insurance. HMG is partnering with insurers to offer a cost indemnification insurance scheme which will make cover available against the cancellation, postponement, relocation or abandonment of events due to new UK Civil Authority restrictions in response to Covid-19. Cover will be available to purchase alongside standard commercial events insurance for an additional premium. The duration of the cover will be from September 2021 to 30th September 2022, with a review in the first half of 2022.Parliamentary approval for additional resources of £14,000,000 for this new expenditure will be sought in a Supplementary Estimate for the Department for Digital, Culture, Media & Sport. Pending that approval, urgent expenditure estimated at £14,000,000 will be met by repayable cash advances from the Contingencies Fund.This scheme will support the UK’s economic recovery from the COVID-19 crisis by giving events the confidence they need to plan for the future, whilst also ensuring that we deliver value for money for taxpayers.

Department for Transport

Transport update

Baroness Vere of Norbiton: My Right Honourable friend, the Secretary of State for Transport (Grant Shapps), has made the following Ministerial Statement:The HGV driver shortage is a long-standing challenge facing countries across the world. As a result of the pandemic, driver testing was suspended for large parts of the last year. It is now back up and running and the Government has already increased capacity, but we can go further. Over the summer, we consulted on three measures which will substantially increase the number of vocational driving tests available. I can announce today that we will proceed with the measures we consulted on: First, car drivers will no longer need to take another test to tow a trailer or caravan, allowing roughly 30,000 more HGV driving tests to be conducted every year. Second, tests will also be made shorter by removing the ‘reversing exercise’ element – and for vehicles with trailers, the ‘uncoupling and recoupling’ exercise – and having it tested separately by a third party. And third, we will make it quicker to get a licence to drive an articulated vehicle, without first having to get a licence for a smaller vehicle. This would make around 20,000 more HGV driving tests available every year and mean drivers can gain their licence and enter the industry more quickly - without reducing the rigour of the test. We've already provided a 50% increase in testing compared to pre Covid. These measures go even further. These new measures follow a public consultation over the summer, which saw thousands of respondents, including industry leaders, support the move as a positive step to help the sector tackle the lorry driver shortage currently affecting countries around the world. Some of these changes will generate additional capacity for HGV tests very rapidly, and we will shortly lay the appropriate licensing regulations before the House. These changes will not change the standard of driving required to drive an HGV, with road safety continuing to be of paramount importance. Any driver who does not demonstrate utmost competence will not be granted a licence. All car drivers will also still be encouraged to undertake training to tow trailers and caravans. A new cross-government ministerial group has been set up to monitor labour supply chains, identify pinch points and consider necessary government action. Chaired by CDL and meeting on a weekly basis, the group includes ministers from numerous Government departments including the DfT, DfE, Home Office, BEIS and DEFRA to make sure all angles are being considered. The driver shortage is a widespread problem affecting countries across Europe and also the United States, caused by a range of factors, including an ageing workforce. Today’s announcement will ramp up driver testing and numbers and help industry leaders build a resilient haulage sector which attracts drivers from across society.